How the internet will save the NHS
Janet Daley argues in The Telegraph that the internet, and cheap flights to the US, have killed off the old criticism of 'Rip Off Britain', and that this means 'choice' could work wonders in the NHS.It's a seductive argument. And to some extent true. But there are some problems.
First, the assumption that the internet has ended 'Rip Off Britain' is hard to sustain. Prices of certain goods have fallen sharply in the last ten years but often for reasons that have little to do with the internet. Computer prices were falling before the internet had left the laboratory. Clothes have fallen in price due to Chinese production, not internet shopping. Food prices are more to do with supermarket pricing power. Similarly with people flying to America.
Second, that there ever was a 'Rip Off Britain' is also not clear. Often newspapers appear unable to distinguish between short-term and unsustainable moves in exchange rates and shops ripping people off. Prices of many goods were always cheaper in Britain (look at PPP comparisons).
Indeed looking at measures of inflation, there seems no evidence that British prices have fallen relative to other countries (or the US). One could argue the statistics fail to measure technological change properly, but that's true of other countries'.
More importantly, third, even if it were true it's not clear what it has to do with the NHS. The reason, despite falls in goods prices, that inflation indices have continued to rise, is the rapidly rising costs of private services, such as lawyers, accountants, haircuts, hotels. These surely have more in common with, and impart more lessons for, the NHS than the price of a Dell PC? Much of these can't be provided (at least with current technology) on the internet, and those that can, such as hotel rooms, appear to be unaffected.
posted by Matthew @ 12/09/2004 10:04:00 AM
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